Quants Question of the Day

Sami won a large amount of money in a lottery. Overcome with impulse, he blew off 40% of his winnings on a brand new Ferrari and Rs. 120,000 on jewelry for his wife. Then realizing that he may have been too rash with the money, he decided to buy a house, spending 30% of the remaining amount on that. He then deposited Rs. 100,000 in a trust for his daughter’s education. He gave away the remaining amount to various charities. If the money he gave to charities amounted to Rs. 26,000, then how much money did Sami win in the lottery?

Sol: [Hint: If 20% of total money was spent then we left with an amount of 80% of total amount. I.e. Remaining = 80 %( total)]
Now, he spent 40% on Ferrari, Rs. 120,000 on jewelry, 30% of remaining on house, Rs. 100,000 on education and remaining Rs. 26,000 on charities. Let the lottery amount be Rs. x
Charities =(x*60% – 120,000)70% – 100,000
26,000 = (0.6x – 120,000)0.7 – 100,000
X= 500,000